Editing Environmental finance (section)

== Impact ==
[[File:European Union as a single entity.png|thumb|European Union Map]]
The European Union Emission Trading Scheme from 2008-2012 was responsible for a 7% reduction in emissions for the states within the scheme. In 2013, allowances were reviewed to accommodate for new emission reduction targets. The new annual recommended target was a reduction of 1.72%.<ref name=":0" /> It is estimated that reducing the amount of quoted credits was restricted more tightly, emissions could have been reduced by a total of 25%.<ref name=":6" /> Nations such as [[Romania]], [[Poland]] and Sweden experienced significant revenue, benefiting from selling credits.  Despite successfully reducing emissions, the European Union Emission Trading Scheme has been critiqued for its lack of flexibility to accommodate to major shifts in the economic landscape and reassess currents contexts to provide a revised cap on trading credits, potentially undermining the original objective of the scheme.<ref>{{Cite web |last=Abdel-Ati |first=Ibrahim |date=2020-03-11 |title=The EU Emissions Trading System Seeking to Improve |url=https://www.climatescorecard.org/2020/03/the-evolving-eu-emissions-trading-system/ |access-date=2023-07-12 |website=Climate Scorecard |language=en-US}}</ref>

The [[New Zealand Emissions Trading Scheme]] of 2008 was modelled to increase annual household energy expenditure to 0.8% and increase fuel prices by approximately 6%. The price of agricultural products such as beef and dairy were modelled to decrease by almost 1%. Price increases in carbon intensive sectors such as foresting and mining were also expected, incentivising a shift towards renewable energy system and improved investment strategies with a less harmful environmental impact.<ref>Ministry for the Environment New Zealand (MFENZ). (2008). ''“7 The Impacts of the Emissions Trading Scheme.” The framework for a New Zealand Emissions Trading Scheme''. https://www.mfe.govt.nz/publications/climate-change/framework-new-zealand-emissions-trading-scheme/7-impacts-emissions</ref>

In 2016, the Québec Cap-and-trade scheme was responsible for an 11% reduction in emissions compared to 1990 emission levels<ref name=":8" />''.'' Due to the associated increased energy costs, fuel prices rose 2-3 cents per litre over the duration of the cap and trade scheme.<ref name=":8" />

In 2014, the Clean Development Mechanism was responsible for a 1% reduction in global greenhouse gas emissions.<ref>Warnecke, C., Day T., Tewari, R. (2015), ''“Impact of the Clean Development Mechanism.” New Climate Institute.''</ref>  The Clean Development Mechanism has been responsible for removing 7 billion tons of greenhouse gasses from the atmosphere through the efforts of almost 8000 individual projects. Despite this success, as the economies of developing nations participating in Clean Development Mechanisms improves, the financial payout to the country supplying such infrastructure increases at a greater rate than economic growth, thus leading to an unoptimised and counterproductive system.<ref>{{cite journal |last1=Stahlke |first1=Theresa |title=The impact of the Clean Development Mechanism on developing countries' commitment to mitigate climate change and its implications for the future |journal=Mitigation and Adaptation Strategies for Global Change |date=January 2020 |volume=25 |issue=1 |pages=107–125 |doi=10.1007/s11027-019-09863-8 |bibcode=2020MASGC..25..107S |s2cid=198632560 }}</ref>